Staff report
Dubai: A focus on innovation and government initiatives to create investment opportunities are reinforcing the UAE’s position as the region’s entrepreneurial hub, said Dubai’s Crown Prince.
Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of the Dubai Executive Council, said that the UAE has adopted strategies for promoting creativity and enabling enterprise in emerging sectors.
Dubai will continue to offer a globally competitive environment for innovation and boost the ease of doing business to cement its position as a preferred investment destination, in line with the Centennial Plan and the Dubai Plan 2021, Shaikh Hamdan added.
Greater transparency and regulations as well as innovation have also helped improve investor confidence in Dubai, he said.
Discussing the UAE Strategy for Artificial Intelligence and the Emirates Blockchain Strategy, he said, “Artificial intelligence and Blockchain are already redefining existing service models and processes, while also transforming the entrepreneurial landscape. Dubai and the UAE provide the ideal platform for innovative entrepreneurs and digital startups to grow globally. We are already seeing successful outcomes.”
According to the ‘State of Digital Investments in the Middle East and North Africa (Mena) 2013-2017’ report, the UAE remained the leader in driving digital start-ups across the Mena region in 2017, both in terms of number of investors and deals.
The report was jointly prepared by Dubai SME, which is an agency of the Department of Economic Development, and Arabnet.
The UAE, which retained its regional leadership for the fifth year, accounted for almost one-third (32 per cent) of all Mena investors. The UAE, Saudi Arabia, Lebanon, and Egypt contributed to 70 per cent of all investments in digital startups in the region in 2017.
While the UAE attracted 298 digital startups, the three countries ranked below it averaged 155 digital startups. Overall, digital startups in the Mena region attracted around Dh2.39 billion ($650 million). Of that amount, 76 per cent went to UAE-based startups, most of which was mobilised by Careem and StarzPlay.
The year also saw investments in diverse tech startups in the finance, healthcare, lifestyle, enterprise and entertainment sectors in addition to media and advertising.
“Almost one-third of the region’s investment funds focused on startup growth are now based in the UAE. Startup accelerators across the region have also grown 16 per cent,” said Abdul Baset Al Janahi, chief executive officer of Dubai SME.
And though venture capital (VC) represents 25 per cent of all investors in digital ventures in the region, the fastest growing investor segment over the past five years has been corporate investors, of which the UAE has the highest share (39 per cent).
Corporate investment initiatives, which accounted for 18 per cent of all tech startup investments in 2017, saw growth of 41 per cent over the past five years. New corporate investors are concentrated mainly in the UAE and Egypt.